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    Zappos Case Study

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    GlenPalmer
    Zappos was founded in 1999 and focused on online shoe sales, growing rapidly over the next decade through excellent customer service and a fun, unique company culture. By 2009, Zappos had over $1 billion in annual sales but was sold to Amazon for $1.2 billion due to losses during the recession. Zappos emphasized creating an emotional connection with customers through highly trained employees who were empowered to solve problems creatively. The company strived to "wow" customers with fast shipping, free returns, and friendly service representatives who received extensive training. However, expanding beyond shoes and integrating with Amazon posed new challenges.

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    Zappos Case Study

    Uploaded by

    GlenPalmer
    611 views10 pages
    Zappos was founded in 1999 and focused on online shoe sales, growing rapidly over the next decade through excellent customer service and a fun, unique company culture. By 2009, Zappos had over $1 billion in annual sales but was sold to Amazon for $1.2 billion due to losses during the recession. Zappos emphasized creating an emotional connection with customers through highly trained employees who were empowered to solve problems creatively. The company strived to "wow" customers with fast shipping, free returns, and friendly service representatives who received extensive training. However, expanding beyond shoes and integrating with Amazon posed new challenges.

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    A solution to the famous zappos.com case study

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    Zappos was founded in 1999 and focused on online shoe sales, growing rapidly over the next decade through excellent customer service and a fun, unique company culture. By 2009, Zappos had over $1 billion in annual sales but was sold to Amazon for $1.2 billion due to losses during the recession. Zappos emphasized creating an emotional connection with customers through highly trained employees who were empowered to solve problems creatively. The company strived to "wow" customers with fast shipping, free returns, and friendly service representatives who received extensive training. However, expanding beyond shoes and integrating with Amazon posed new challenges.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    611 views10 pages

    Zappos Case Study

    Uploaded by

    GlenPalmer
    Zappos was founded in 1999 and focused on online shoe sales, growing rapidly over the next decade through excellent customer service and a fun, unique company culture. By 2009, Zappos had over $1 billion in annual sales but was sold to Amazon for $1.2 billion due to losses during the recession. Zappos emphasized creating an emotional connection with customers through highly trained employees who were empowered to solve problems creatively. The company strived to "wow" customers with fast shipping, free returns, and friendly service representatives who received extensive training. However, expanding beyond shoes and integrating with Amazon posed new challenges.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    ZAPPOS.

    COM GLEN SAVIO PALMER


    15BM60056
    TIMELINE OF EVENTS
    YEAR Milestones
    1999 -Found by Nick Swinmurn
    -A variation of the Spanish word Zapotas
    which means "shoes.
    2000 - Zappos records $1.6 million in gross sales
    (exhibit 6)
    - Zappos had 150 brands and 400.000 pairs of
    shoes
    2001 - Nick Swinmurn and Tony Hsieh as Co-Ceo of
    Zappos
    - Sustained effort produces $8.6 million in
    gross sales
    2002 - The brand elevate gross sales to $32 million
    2003 - Gross sales Zappos rise to $70 million
    2004 - Gross sales Zappos more than double to
    $184 million
    YEAR Milestones
    2005 - Sequoia increases its investment in Zappos to a
    total of
    $35million
    - Alfred Lin, cofounder of venture frogs, join
    Zappos as CFO
    - Gross Zappos sales increase to $370 million
    - Zappos moved its headquarters to Las Vegas
    2006 - Nick Swinmurn leaves Zappos
    - Gross sales at Zappos climb to $597 million
    2007 -6pm.com is acquired by Zappos
    -Zappos expand its product categories to
    include eyewear, handbags,clothing, watches
    and kids merchandise
    - Gross sales at Zappos hit $840 million
    2008 - Gross sales at Zappos hit $1 billion
    - Zappos net Revenue of $635million and net
    income of
    $10.8 million
    - Buy Kiva Mobile Fulfillment System (Kiva MFS)
    2009 - Sold to Amazon.com for $1.2Bil
    COMPANY CULTURE
    Importance in Providing
    Zappos Core Values Service
    Differentiator that gave the
    company competitive advantage
    Creating fun and a little weirdness
    Deliver WOW Through Service
    Embrace and Drive Change An informal and interpersonal
    Create Fun and a Little Weirdness culture reflected in customer service
    Be Adventurous, Creative, and Open-Minded delivery
    Pursue Growth and Learning Friendly, helpful above and
    Build Open and Honest Relationships With
    Communication
    beyond customer service
    Build a Positive Team and Family Spirit Target was to establish a Personal
    Do More with Less Emotional Connection (PEC) with
    Be Passionate and Determined the customers
    Be Humble
    CLT members were encouraged to
    take as much time as necessary to
    assist customers and create a
    wow factor
    SERVICE DELIVERY
    ROLES
    Employee Customer

    Frontline Customer Interaction Employees were


    problem solvers

    Goal was to wow customers & establish personal


    connection
    Interacted with the well categorized and interactive
    Call center turnover in 2009 was only 7% whereas website
    industry average was 150%
    Those who still had issues could call up 24x7 helplines
    Back office employees (warehouse) were highly flexible
    and processed orders in times which were best in the Did not have to pay shipping charges
    industry
    Were delighted by the service and sent in letters, wrote
    blogs, or even uploaded video testimonials

    Spread positive word of mouth


    SERVICE
    STRATEGIES(1/3)
    Well trained and empathetic staff
    staff:
    225 hours of core training
    160 hours initial/new hire training
    Additional courses: effective communication,
    coaching, overcoming conflict & managing
    stress
    Additional 39 hours: Inspiring Great Teams,
    Leadership Zappos Style & Cultivating Culture
    Not using pay for performance

    Treat employees with respect


    Give them a conducive working environment
    SERVICE STRATEGIES
    (2/3)
    Static Racks freestanding
    shelving units
    Inventory Carousels ferris wheel type
    Managem shelving units
    ent Kiva Automated storage &
    retrieval system using inventory
    State
    pods of the art LPN system
    Introduced a mixture of legacy
    Embracing
    systems and modern systems to
    Technolog
    keep costs low
    y, Smartly
    Kiva MFS helped bring down
    shipping times
    SERVICE STRATEGIES
    (3/3)
    Order shipping times are the best in the
    Delight industry
    the Friendly, helpful above and beyond customer
    service
    Custo Free shipping
    mer
    Free returns policy

    Surprise upgrades to overnight shipping

    Provide the widest assortment of product types

    Provide customer interactive tools to filter


    his/her searches
    Provided platforms to the customers to express
    their opinion
    CHALLENGES

    The 2008-09 recession had hit Zappos


    business, leading to layoffs and losses
    Zappos was still perceived as a
    marketplace for shoes, i.e. it had failed
    to transcend categories
    Zappos apparel business was not in
    the same league as the shoe business
    Cultural differences between Amazon
    and Zappos
    THANK YOU

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